What Is a Preemptive Right

question 28

Multiple Choice

What is a preemptive right?

• A) It is the right of shareholders to create a trust and elect a commissioner for the trust.
• B) It is the right of shareholders to make an advance voting agreement among them to vote in a specific manner.
• C) It is the right of shareholders to protect dilution of their percentage of share ownership.
• D) It is the right of shareholders to elect a representative, commonly another individual or a written document, through which they can cast their votes at the annual meeting.
• E) It is the right of shareholders to distribute their total votes in any manner they choose-all for one candidate or several shares for different candidates.

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Definitions:

Adjusted Gross Income

Total income minus specific deductions, used to determine taxable income on an individual's tax return.

Medicare Withholding

The portion of an individual's income that is deducted for Medicare, which is a form of health insurance typically for individuals aged 65 and older.

FSA

A Flexible Spending Account, which is a special account used for setting aside pre-tax dollars for eligible healthcare and dependent care expenses.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, including plans like 401(k)s and IRAs.